Wednesday, December 12, 2018 | ePaper

Asian, European stocks up after historic N Korea summit

  • Print
AFP, Hong Kong :
Major markets in Asia and Europe rose Tuesday after Donald Trump and Kim Jong Un held a historic summit, while investors look ahead to key policy meetings at the Federal Reserve and European Central Bank this week.
Trump said he had formed a "special bond" with the North Korean leader, who reaffirmed his commitment to "complete denuclearisation of Korean Peninsula" in a joint agreement signed by the two.
While the meeting was not expected to see any immediate results, it has provided hope for peace on the Korean peninsula.
However, investors remain concerned about a possible global trade war after the weekend's Group of Seven summit in Canada ended with Trump withdrawing support for a joint communique and accusing host Prime Minister Justin Trudeau of being dishonest.
That came just after he had hit Canada, Mexico and the European Union with steel and aluminium tariffs, sparking threats of retaliation that some fear could escalate.
For most of the day eyes were on Singapore, where Trump and Kim became the first sitting leaders of their countries to meet.
The pair signed what Trump called a "pretty comprehensive" and "very important" document, which spoke of "new US-DPRK relations" and committed Washington to "security guarantees".
Kim said the two Cold War foes had vowed to "leave the past behind" and promised "the world will see a major change".
Stocks fluctuated through the day but by the end of trade Tokyo was up 0.3 percent and Shanghai closed 0.9 percent higher. Hong Kong was 0.1 percent higher.
However, Seoul dipped 0.1 percent, while the Korean won eased 0.2 percent. Singapore was slightly lower, as were Wellington, Kuala Lumpur and Taipei.
In early trade London and Paris each rose 0.3 percent, while Frankfurt gained 0.8 percent.
"After quickly shrugging off the G7 fight club in Quebec, investors latched on to the air of optimism circulating from the Singapore summit," said Stephen Innes, head of Asia-Pacific trading at OANDA.
"And with pro-euro signals emanating from the newly formed Italian government placating investors anxiety about the future of the eurozone, the global risk was in the happy zone Monday."
However, Goohoon Kwon, co-head of Korea research and senior Asia economist at Goldman Sachs, told Bloomberg Television ahead of the signing that markets had already factored in a lower risk of conflict on the Korean peninsula.
He added that the "follow through, execution, implementation" of any agreements was most crucial.
While the Trump-Kim summit was the big news story, traders are keenly awaiting the Fed and ECB policy meetings. The US bank is expected to lift interest rates Wednesday but its post-meeting statement will be closely watched for a clue about its plans for future hikes.
Then on Thursday, European bank officials will likely debate for the first time cutting back on their crisis-era stimulus programme.
The euro extended gains after rallying Monday on the back of comments from new Italian Finance Minister Giovanni Tria ruling out Rome's exit from the single currency. That eased concerns about his populist, Eurosceptic government's intentions regarding the currency bloc.
The pound was also under pressure as British MPs prepare to vote on a string of amendments to key Brexit legislation that could force Prime Minister Theresa May's hand in talks with the European Union.

More News For this Category

Chevron honours students of its 3 gas field areas with stipends

Chevron honours students of its 3 gas field areas with stipends

Business Desk :Chevron Bangladesh awarded scholarship among some 824 students from 24 educational institutions near Chevron's Bibiyana, Jalalabad and Moulavi Bazar natural gas fields.The was a part of its

Indian rupee slides after central bank chief's exit

AFP, Mumbai :India's rupee plunged on Tuesday after the country's central bank chief quit following a dispute with the government that analysts say raises fears about its independence.Urjit Patel

Murtoza Zaman, Chief Executive Officer of Unimart Ltd, receiving a certificate and crest of highest VAT payer award from the Finance Minister, A M AMuhith for the second time on the occasion of National VAT Day 2018. President, FBCCI Md. Shafiul Islam (Mohiuddin) and Chairman, Anti-Corruption Commission Iqbal Mahmood were present. The program was presided by Md. Mosharraf Hossain Bhuiyan, Chairman of National Board of Revenue.

Murtoza Zaman, Chief Executive Officer of Unimart Ltd, receiving a certificate and crest of highest VAT payer award from the Finance Minister, A M AMuhith for the second time on the occasion of National VAT Day 2018. President, FBCCI Md. Shafiul Islam (Mohiuddin) and Chairman, Anti-Corruption Commission Iqbal Mahmood were present. The program was presided by Md. Mosharraf Hossain Bhuiyan, Chairman of National Board of Revenue.

.

Govt provides ICT training for 113,308 people

BSS, Dhaka :The government has already imparted trainings to 113,308 people in different terms on Information and Communication Technology (ICT) aiming at creating a large number of skilled human

Fly Dubai to re-launch flights to Chattogram

Business Desk :Dubai-based flydubai on Sunday announced to restart its flights to Chattogram on January 20 next with daily flights."We're delighted that flydubai is returning to Chattogram. It reaffirms

AIBL opens 165th branch in Tangail

Business Desk :Al-Arafah Islami Bank Ltd (AIBL) on Monday opened its 165th branch at Elenga of Tangail district.Chairman of Audit Committee of the Bank Amir Uddin formally inaugurated the

Shafiul Islam, Chairman of Aftab Automobiles Ltd, presiding over its 38th AGM at a convention center in the city on Sunday. The AGM approves 12 percent cash dividend for the year ended June 30, 2018 for its shareholders.

Shafiul Islam, Chairman of Aftab Automobiles Ltd, presiding over its 38th AGM at a convention center in the city on Sunday. The AGM approves 12 percent cash dividend for the year ended June 30, 2018 for its shareholders.

.

Stocks maintain downward trend on lower transactions

Economic Reporter :Stocks witnessed another bearish session on Tuesday as all indices on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) maintained downward trend due to lower transactions.Both

Bangladesh Venture Capital receives 'Alternative Fund Manager' license

Business Desk :Bangladesh Venture Capital Ltd has received 'Alternative Investment Fund Manager' License from the Bangladesh Securities and Exchange Commission (BSEC).Bangladesh Venture Capital Ltd received the license from the

Japanese investors urged to invest in Bangladesh

Business Desk :Bangladesh Ambassador to Japan Rabab Fatima on Tuesday urged the Japanese investors to invest in Bangladesh highlighting the current investment and business opportunities of the country.  The